EconomicsQ&A by dot point

The factors that influence aggregate demand and aggregate supply, and how each affects the achievement of the domestic macroeconomic goals, including consumer and business confidence, interest rates, disposable income, the exchange rate, government policy, productivity, costs of production and overseas economic conditions

The domestic macroeconomic goals of strong and sustainable economic growth, full employment, and low and stable inflation, including how each is measured, how each has been performing in recent years, and the relationships and trade-offs between them

The forms of market failure (public goods, externalities, asymmetric information, market power) and the rationale for and forms of government intervention to correct market failure, including indirect taxes, subsidies, regulation, public provision and direct provision

The market mechanism and the role of demand and supply in determining relative prices and the allocation of resources, including the conditions of perfect competition, the law of demand, the law of supply, equilibrium price and quantity, and movements along versus shifts of the curves

The role of aggregate supply policies in achieving the domestic macroeconomic goals, including the rationale for supply-side policy, the major categories (training and education, infrastructure investment, innovation and R&D, immigration, competition and deregulation, tax reform), and the strengths and weaknesses

The role of budgetary (fiscal) policy in achieving the domestic macroeconomic goals, including the structure of the Commonwealth Budget, automatic stabilisers and discretionary changes, the budget outcome and the public debt, and the strengths and weaknesses of budgetary policy

The role of labour market reforms and immigration in influencing aggregate supply and the achievement of the domestic macroeconomic goals, including wages policy, enterprise bargaining, the Fair Work Commission, the National Employment Standards, and the size and composition of the migration program

The role of monetary policy in achieving the domestic macroeconomic goals, including the cash rate as the policy instrument, the transmission mechanism, the stance of monetary policy, and the strengths and weaknesses of monetary policy